- Russia also discusses upgrading a refinery in Pakistan with help from Russian companies
Russia and Pakistan are in talks on a potential oil-sector agreement, Pakistan’s Finance Minister Muhammad Aurangzeb told Russia’s RIA news agency in remarks published on Tuesday.
“All of these areas are Russia’s strengths. And we would be very happy if Russia agreed on an agreement in this sector with Pakistan,” Aurangzeb told RIA in an interview when asked about wider cooperation in exploration, production and refining between the two countries.
“At present, the issue is being discussed by the energy ministries of both sides.”
According to Reuters, Russia also discussed upgrading a refinery in Pakistan with Russian companies involved, Russian Energy Minister Sergei Tsivilev had said in November.
Pakistan has stepped up engagement with Russia in recent years as Moscow sought new energy markets after Western sanctions over Ukraine, and Islamabad looked to lower import costs. Pakistan began buying Russian crude in 2023. The development of a refinery in Pakistan and broader energy sector cooperation are also key focuses of the bilateral talks.
Aurangzeb also said Russia and Pakistan are looking into building another steel plant in Pakistan, RIA reported.
Pakistan is adamant on intensifying its energy and minerals collaboration with Russia, including exploring joint ventures in exploration, production, and refining, following recent discussions at the 14th St. Petersburg International Gas Forum (SPIGF) 2025. Finance Minister Muhammad Aurangzeb highlighted these initiatives in his interview.
At the SPIGF, held from October 7-10, Federal Minister for Petroleum Ali Pervez Malik represented Pakistan, outlining the country’s energy reforms and investor-friendly policies. Malik emphasized Pakistan’s efforts to diversify its energy sector and attract international investments to ensure long-term sustainability.
The SPIGF event, attended by over 30,000 participants from 50 countries, focused on natural gas development, exploration technologies, and sustainable energy systems. Malik’s participation underscored Pakistan’s commitment to becoming a key destination for resource-based investment, building on discussions from earlier meetings, including the September meeting between Prime Minister Shehbaz Sharif and Russian President Vladimir Putin in Beijing.
The two leaders reaffirmed their commitment to expanding cooperation in energy, trade, and regional connectivity, including the development of a trade corridor linking Russia, Central Asia, Afghanistan, and Pakistan.
Malik’s visit to SPIGF also followed his participation in the St. Petersburg International Economic Forum, where he unveiled Pakistan’s Mining Framework Policy and discussed the Reko Diq project’s progress. He noted that Pakistan’s mineral wealth, including copper, gold, lithium, and rare earth elements, offers significant opportunities for sustainable development with clear regulatory frameworks.
The engagement with Russia comes as Pakistan continues to balance its external economic and strategic relationships amid shifting global alignments. While Islamabad has expanded energy cooperation with Moscow in response to cost pressures and supply diversification needs, it remains engaged with the United States and multilateral lenders, particularly the IMF, where policy coordination and macroeconomic discipline remain central to Pakistan’s external financing outlook.
With Russia still subject to wide-ranging US, EU, UK, and allied sanctions imposed after its invasion of Ukraine, Pakistan’s recent Russia-focused engagements could be framed as solely commercially driven rather than geopolitical, reflecting Pakistan’s broader effort to pursue issue-based partnerships in a fragmented global energy market.
